Ssangyong Motor’s factory operates normally at the beginning of this year..”Concurrent negotiations with parts makers”

[이데일리 손의연 기자] The plant is operating normally at the beginning of this year after facing the risk of shutting down the plant twice due to supply disruptions by suppliers. Ssangyong Motor has earned a grace period with the’Autonomous Restructuring Support’ (ARS) program before the corporate rehabilitation procedure (legal management).

The front door of Ssangyong Motor’s Pyeongtaek factory in Pyeongtaek, Gyeonggi-do on the afternoon of the 21st when Ssangyong Motors applied for corporate rehabilitation procedures to the Seoul Rehabilitation Court. (Photo = Yonhap News)

According to Ssangyong Motors on the 4th, Ssangyong Motors has been operating the factory normally since it stopped operating its factory on December 24 and 28 last year.

The factory was closed on January 1st and 3rd consecutive holidays.

Ssangyong Motor is operating the plant while negotiating with parts suppliers on the cost of delivery.

An official from Ssangyong Motor said, “It is not 100% smooth, but we are continuing to manage procurement.”

It is predicted that Ssangyong Motor’s major shareholder, Mahindra Group, may agree on key terms with the target for sale within this week as early as this week, and the crisis of factory shutdown will be resolved.

Earlier, according to an Indian foreign press, President Pawan Goenka Mahindra said at a press conference on the 1st that “the main terms and conditions related to the sale of Ssangyong Motor (term sheet) have almost been negotiated. If this is not signed, Ssangyong Motor will enter court management.”

The Mahindra Group is reportedly planning to reduce its current 74.7% stake in Ssangyong Motor to less than 30%.

Ssangyong Motor’s position is to receive new capital from a new investor before that, as the corporate rehabilitation procedure was held until February 28th.

An official from Ssangyong Motors said, “Mahindra expresses that it will sell Ssangyong Motors, but it continues to hold a certain stake while seeking new investors.” I am doing it.” He added, “It seems that we will seek measures such as reduction of the stockholders (reduction of the stocks held), and it has not been decided in detail such as the reduction rate or whether the reduction will be made.” There is also a plan to withdraw the application for commencement of the (rehabilitation procedure).”